Bill Text: TX HB3502 | 2011-2012 | 82nd Legislature | Comm Sub

---

Bill Title: Relating to the regulation of crafted precious metal dealers and dealerships; providing a criminal penalty.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-04-27 - Comm. report sent to Local & Consent Calendar [HB3502 Detail]

Download: Texas-2011-HB3502-Comm_Sub.html

---

82R21338 JE-F
By: Raymond H.B. No. 3502
Substitute the following for H.B. No. 3502:
By: Menendez C.S.H.B. No. 3502

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of crafted precious metal dealers and
dealerships; providing a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter B, Chapter 1956,
Occupations Code, is amended to read as follows:
SUBCHAPTER B. [SALE OF] CRAFTED PRECIOUS METAL [TO] DEALERS AND
DEALERSHIPS
SECTION 2. Section 1956.051, Occupations Code, is amended
to read as follows:
Sec. 1956.051. DEFINITIONS. In this subchapter:
(1) "Commission" means the Texas Commission of
Licensing and Regulation.
(2) "Crafted precious metal" means jewelry,
silverware, an art object, or another object, made wholly or partly
from precious metal, other than a coin, a bar, a [or] commemorative
medallion, or scrap or a broken item selling at not more than five
percent more than the scrap value of the item [made in whole or in
part from precious metal].
(3) [(2)] "Dealer" means a person who engages in the
business of purchasing and selling crafted precious metal,
including purchases or sales made through the mail.
(4) "Dealership" means a location at which or premises
in which a dealer conducts business.
(5) [(3)] "Department" means the Texas Department of
Licensing and Regulation [Public Safety].
(6) "Personal identification document" means a
document that contains a photograph of the seller or transferor and
is:
(A) a state driver's license;
(B) a state identification card;
(C) a passport;
(D) a military identification;
(E) a certificate of identification from the
Mexican Consulate, certificado de matricula consular; or
(F) identification issued by the agency of the
United States responsible for citizenship and immigration.
(7) [(4)] "Precious metal" means gold, silver,
platinum, palladium, iridium, rhodium, osmium, ruthenium, or an
alloy of those metals.
SECTION 3. Section 1956.060, Occupations Code, is amended
to read as follows:
Sec. 1956.060. EXCEPTION: CRAFTED PRECIOUS METAL ACQUIRED
BY PERSON LICENSED UNDER TEXAS PAWNSHOP ACT. This subchapter does
not apply to crafted precious metal acquired by a person or an
employee of a person licensed under Chapter 371, Finance Code.
SECTION 4. Subchapter B, Chapter 1956, Occupations Code, is
amended by adding Sections 1956.0611, 1956.0612, 1956.0613,
1956.0614, 1956.0615, 1956.0616, 1956.0617, 1956.0618, 1956.0619,
and 1956.06191 to read as follows:
Sec. 1956.0611. RULEMAKING. The commission may adopt rules
necessary to implement and enforce this subchapter.
Sec. 1956.0612. DEALERSHIP LICENSE REQUIRED. A person may
not engage in business as a crafted precious metal dealer unless the
person holds a dealership license.
Sec. 1956.0613. MULTIPLE PLACES OF BUSINESS. (a) A
separate dealership license is required for each place of business
operated under this subchapter.
(b) The department may issue more than one dealership
license to a person if the person complies with this subchapter for
each license.
Sec. 1956.0614. APPLICATION REQUIREMENTS. (a) An
application for a dealership license must be made to the department
and must:
(1) be under oath;
(2) state:
(A) the full name and address of the applicant;
(B) the type of business entity formed by the
applicant, if the applicant is not an individual;
(C) the full name and address of each general
partner and the type of partnership, if the applicant is a
partnership;
(D) the full name and address of each officer and
owner, if the applicant is an unincorporated association;
(E) except as provided by Subsection (b), the
full name of each officer and shareholder, if the applicant is a
corporation;
(F) the full name and address of each manager and
operator of the dealership;
(G) the location where the dealership's business
is to be conducted and:
(i) a copy of the certificate of occupancy
for the location; and
(ii) proof of the applicant's ownership of
the property or a copy of a lease agreement for the lease of the
property;
(H) the intended hours of operation of the
dealership; and
(I) other relevant information required by the
department; and
(3) state that the applicant and, if applicable, any
business partner or officer of the corporation has not had a license
revoked under this subchapter or Chapter 371, Finance Code.
(b) The full name of each shareholder is not required if the
applicant is a corporation with five or more shareholders.
(c) If an applicant is leasing the property where the
business is to be conducted, the term of the lease agreement may not
expire before the first anniversary of the date the application is
filed.
Sec. 1956.0615. FEES. (a) Except as provided by
Subsection (b), an applicant must submit with the application:
(1) an application fee of:
(A) $500, if the applicant does not hold a
license under this subchapter; or
(B) $200, if the application is for an additional
dealership license for a separate location; and
(2) an annual license fee in an amount determined by
the commission by rule.
(b) An applicant that is exempt from taxation under Section
501(c)(3), Internal Revenue Code of 1986, is exempt from the fees
required under Subsection (a).
Sec. 1956.0616. LICENSE TERM; RENEWAL. A license expires
on the first anniversary of the date of issuance and may be renewed
annually on payment of the required annual license fee.
Sec. 1956.0617. INVESTIGATION; NOTICE OF APPLICATION.
(a) On receipt of an application and the required fees, the
department shall:
(1) conduct an investigation to determine whether to
issue the license; and
(2) give notice of the application to:
(A) the Department of Public Safety; and
(B) each local law enforcement agency in the
county in which the dealership is to conduct business.
(b) The notice under Subsection (a) must state the name and
address of each person required by Section 1956.0614 to be listed on
the license application.
(c) The department shall give the Department of Public
Safety and local law enforcement agencies a reasonable period to
respond to the notice with information concerning the listed
persons or any other relevant information.
Sec. 1956.0618. NOTICE OF DENIAL; HEARING. (a) If the
department determines not to issue a license, the department shall
deliver to the applicant at the address provided in the application
a written notice by personal delivery or certified mail, return
receipt requested. The notice must include the department's reason
for denying the license.
(b) Not later than the 30th day after the date of receipt of
a notice under Subsection (a), an applicant may request a hearing on
the application denial. The department shall set the hearing not
later than the 60th day after the date of the request. A hearing
under this section is subject to Section 51.354.
(c) If the department denies the application, the
department shall retain the application fee and shall return to the
applicant the annual license fee submitted with the application.
Sec. 1956.0619. CONTENTS AND DISPLAY OF LICENSE. (a) A
license must state:
(1) the name of the dealer;
(2) the address at which the dealership conducts
business; and
(3) that the dealership is authorized to deal in
crafted precious metals.
(b) A dealer shall display a license in a conspicuous
location at the place of business provided on the license.
Sec. 1956.06191. APPLICATION FOR RELOCATION. A dealer who
wishes to move a dealership from the location authorized by a
license must file a relocation application with the department not
later than the 30th day before the date the dealer moves and pay an
application fee of $20.
SECTION 5. The heading to Section 1956.062, Occupations
Code, is amended to read as follows:
Sec. 1956.062. REPORT OF PURCHASE OR EXCHANGE REQUIRED.
SECTION 6. Section 1956.062, Occupations Code, is amended
by amending Subsections (b), (c), and (d) and adding Subsections
(c-1) and (c-2) to read as follows:
(b) Before [crafted precious metal is offered for sale or
exchange,] a dealer [must notify each person intending to sell or
exchange the metal that, before the dealer] may purchase or
exchange crafted precious metal [accept any of the person's
property], the dealer [person] must compile [file with the dealer]
a list describing all of the [person's] crafted precious metal to be
accepted by the dealer. The list must contain:
(1) the proposed seller's or transferor's name, sex,
height, date of birth, eye color, and address;
(2) the date and time of the purchase or exchange;
(3) a complete and accurate description of the crafted
precious metal, including:
(A) a serial number and year produced or
manufactured, if available; and
(B) the size, weight, material, length, number of
items, capacity, or other identifying characteristics; and
(4) [(3)] the proposed seller's or transferor's signed
certification that the information is true and complete.
(c) The dealer shall:
(1) require the proposed seller or transferor to
physically present [record] the proposed seller's or transferor's
personal identification document; and
(2) record:
(A) the type of personal identification document
presented; and
(B) the identification [driver's license] number
of the [or department] personal identification document
[certificate number on physical presentation of the license or
personal identification certificate by the seller].
(c-1) The record described by Subsection (c) must accompany
the list required by Subsection (b).
(c-2) All lists and records required by this section must be
legible.
(d) The dealer shall:
(1) provide to a peace officer or the department, on
demand, the list required by Subsection (b); and
(2) mail or deliver a complete copy of the list to the
chief of police or the sheriff as provided by Section 1956.063 not
later than 48 hours after the list is filed with the dealer.
SECTION 7. Subchapter B, Chapter 1956, Occupations Code, is
amended by adding Section 1956.0635 to read as follows:
Sec. 1956.0635. RECEIPT REQUIRED. (a) A dealer, at the
time of the sale or exchange of crafted precious metal, shall
deliver a receipt to the seller or transferor. Each receipt
delivered by the dealer must:
(1) be numbered sequentially;
(2) contain the date and time of the transaction or
acquisition; and
(3) itemize the crafted precious metal purchased or
exchanged, the price paid for the item, and the value of each item,
if melted.
(b) An accurate copy or record of the receipt shall be:
(1) maintained until the third anniversary of the date
of the sale or exchange; and
(2) available on request for inspection during
business hours by a peace officer or the department.
SECTION 8. Section 1956.064, Occupations Code, is amended
to read as follows:
Sec. 1956.064. REQUIRED RETENTION OF CRAFTED PRECIOUS
METAL. (a) A dealer may not melt, deface, alter, or dispose of
crafted precious metal that is the subject of a report required by
this subchapter before the 21st [11th] day after the date the report
is filed unless[:
[(1) the peace officer to whom the report is
submitted, for good cause, authorizes disposition of the metal;
[(2) the dealer obtains the name, address, and
description of the buyer and retains a record of that information;
or
[(3)] the dealer is a pawnbroker and the disposition
is the redemption of pledged property by the pledgor.
(b) During the hold period required by Subsection (a), the
crafted precious metal shall be stored or displayed:
(1) in the exact form received;
(2) in a manner as to be identifiable from the
description provided under Section 1956.062;
(3) in a manner as to not impede or prevent the crafted
precious metal's examination by a peace officer or the department;
and
(4) at the dealership where the crafted precious metal
was purchased or exchanged. [A dealer who retains information
under Subsection (a)(2) shall make that information available for
inspection by any peace officer.]
SECTION 9. Subchapter B, Chapter 1956, Occupations Code, is
amended by adding Section 1956.0645 to read as follows:
Sec. 1956.0645. STOLEN CRAFTED PRECIOUS METAL. (a) A
dealer or an agent or employee of a dealership shall:
(1) monitor the purchase of crafted precious metal to
identify or prevent transactions involving stolen crafted precious
metal;
(2) make reasonable efforts to avoid accepting or
purchasing stolen crafted precious metal; and
(3) immediately report to a local law enforcement
agency:
(A) an offer to sell to the dealership crafted
precious metal actually known or reasonably suspected to be stolen;
(B) the identity, if known, and the description
of the person offering to sell the metal described by Paragraph (A);
and
(C) the purchase of crafted precious metal
subsequently determined or reasonably suspected to be stolen.
(b) A dealer shall cooperate with a local law enforcement
agency regarding any matter relating to stolen crafted precious
metal and assist in the prompt resolution of an official
investigation.
SECTION 10. The heading to Section 1956.065, Occupations
Code, is amended to read as follows:
Sec. 1956.065. INSPECTION OF CRAFTED PRECIOUS METAL [BY
PEACE OFFICER].
SECTION 11. Section 1956.065(a), Occupations Code, is
amended to read as follows:
(a) A dealer shall make crafted precious metal purchased or
exchanged by the dealer available for inspection by a peace officer
or the department during regular business hours while in the
dealer's possession.
SECTION 12. Section 1956.066, Occupations Code, is amended
to read as follows:
Sec. 1956.066. PURCHASE FROM MINOR PROHIBITED. [(a)] A
dealer may not purchase crafted precious metal from a person
younger than 18 years of age [unless the seller delivers to the
dealer before the purchase a written statement from the seller's
parent or legal guardian consenting to the transaction].
[(b) The dealer shall retain the statement with the records
required to be kept under this subchapter. The dealer may destroy
the statement after the later of:
[(1) the date the item is sold; or
[(2) the first anniversary of the date the dealer
purchased the item.]
SECTION 13. Subchapter B, Chapter 1956, Occupations Code,
is amended by adding Sections 1956.0685 and 1956.0686 to read as
follows:
Sec. 1956.0685. GROUNDS FOR DENIAL, REVOCATION, OR
SUSPENSION OF LICENSE. The department may deny, revoke, or suspend
a dealership license if the dealer:
(1) violates this subchapter or a rule adopted or an
order issued under this subchapter;
(2) falsifies information on a license application; or
(3) is convicted of an offense under Section 31.03,
37.09, or 37.10, Penal Code.
Sec. 1956.0686. NOTICE OF HEARING. (a) The department
shall send written notice to the dealer of a dealership license
revocation or suspension hearing that includes the cause or
allegations of the revocation or suspension hearing.
(b) A hearing under this section is subject to Subchapter G,
Chapter 51.
SECTION 14. Section 1956.069(a), Occupations Code, is
amended to read as follows:
(a) A person commits an offense if the person violates this
subchapter [dealer commits an offense if the dealer:
[(1) fails to make or permit inspection of a report as
required by Section 1956.062 or 1956.063;
[(2) disposes of crafted precious metal or fails to
make a record available for inspection by a peace officer as
required by Section 1956.064;
[(3) fails to obtain or retain a statement as required
by Section 1956.066;
[(4) fails to file a registration statement as
required by Section 1956.067; or
[(5) purchases an object in violation of Section
1956.068].
SECTION 15. Section 215.031, Local Government Code, is
amended to read as follows:
Sec. 215.031. HAWKERS; PEDDLERS; PAWNBROKERS; CRAFTED
PRECIOUS METAL DEALERS. The governing body of the municipality may
license, tax, suppress, prevent, or otherwise regulate:
(1) hawkers;
(2) peddlers; [and]
(3) pawnbrokers; and
(4) crafted precious metal dealers.
SECTION 16. (a) As soon as practicable after the effective
date of this Act, the Texas Commission of Licensing and Regulation
shall adopt the rules and procedures necessary to implement
Subchapter B, Chapter 1956, Occupations Code, as amended by this
Act.
(b) A crafted precious metal dealer is not required to hold
a license under Subchapter B, Chapter 1956, Occupations Code, as
amended by this Act, before March 1, 2012.
(c) Section 1956.069, Occupations Code, as amended by this
Act, applies only to an offense committed on or after the effective
date of this Act. An offense committed before the effective date of
this Act is governed by the law in effect on the date the offense was
committed, and the former law is continued in effect for that
purpose. For purposes of this subsection, an offense was committed
before the effective date of this Act if any element of the offense
occurred before that date.
SECTION 17. This Act takes effect September 1, 2011.